BANGKOK (AP) — Stocks fell in Asia Thursday after a third straight day of losses on Wall Street, as the long, record-breaking rally lost more steam.
Oil prices rose nearly $1 and U.S. futures were mixed.
Japan’s benchmark Nikkei 225 posted bigger early gains to end 0.1% higher at 38,143.29, as purchasing managers’ indexes showed worsening conditions in Japan for both manufacturing and services sectors. The overall composite PMI, compiled by au Jibun Bank, fell to a two-year low.
“Japan’s private sector entered contraction territory at the start of the fourth quarter of the year,” Usamah Bhatti, economist at S&P Global Market Intelligence, said in a commentary. “Confidence in business growth over the next 12 months weakened in October and was the least pronounced since August 2020.”
Chinese markets fell, with Hong Kong’s Hang Seng losing 1.1% to 20,531.19, while the Shanghai Composite index lost 0.8% to 3,277.35.
In Seoul, the Kospi lost 0.7% to 2,581.03 and Australia’s S&P/ASX 200 fell 0.1% to 8,206.30.
Taiwan’s Taiex lost 0.6% and India’s Sensex was 0.1% lower. Bangkok’s SET fell 0.3%.
“A cocktail of concerns about China’s economic prospects and controversial US presidential election weighed heavily on market sentiment,” Stephen Innes of SPI Asset Management wrote in a commentary.
On Wednesday, the S&P 500 fell 0.9% to 5,797.42. The recent decline follows six consecutive winning weeks, the longest streak this year.
Shares are falling under increasing pressure from government bond yields. Higher yields may make investors reluctant to pay high prices for stocks, which critics say already seem overpriced after rising faster than corporate profits.
The Dow Jones Industrial Average fell 1% to 42,514.95, while the Nasdaq index tumbled 1.6% to 18,276.65. Nvidia and other Big Tech stocks were among the heaviest weights in the market.
The yield on the 10-year government bond rose again to 4.23%, from 4.21% late Tuesday and from just 4.08% Friday.
Treasury yields have risen after a series of reports show the US economy remains stronger than expected. That’s good news for Wall Street, as it boosts hopes that the economy can escape the worst inflation in generations without the painful recession that many feared was inevitable.
McDonald’s fell 5.1% after federal health officials linked the Quarter Pounder burgers to an E. coli outbreak that has affected at least 49 people in 10 states. Researchers are still trying to figure out which specific ingredient was contaminated, and the Centers for Disease Control and Prevention said McDonald’s stopped using fresh chopped onions and quarter-pound beef patties in several states during their investigation.
Coca-Cola fell 2.1%, although it reported stronger profit and revenue for the latest quarter than analysts expected.
Boeing fell 1.8% in what could be one of the biggest impact days in years for the struggling aerospace manufacturer.
The company reported a loss of more than $6 billion in the last quarter. Later Wednesday, Boeing factory workers voted 64% against the company’s latest contract offer, opting to continue a six-week strike that has halted production of the aerospace giant’s best-selling jetliners. Boeing shares have lost nearly 40% this year.
Big Tech stocks, whose prices have soared amid Wall Street’s frenzy over artificial intelligence technology, were the heaviest weight in the market. Nvidia fell 2.8% and Apple lost 2.2%.
But AT&T rose 4.6% after reporting stronger earnings than analysts expected for its latest quarter, and Texas Instruments climbed 4% after the semiconductor company reported stronger-than-expected earnings and revenue.
In other trades early Thursday, U.S. benchmark crude gained 79 cents to $71.56 a barrel in electronic trading on the New York Mercantile Exchange.
Brent crude, the international standard, rose 75 cents to $75.81 a barrel.
The dollar fell to 152.16 Japanese yen after rising above 153 yen on Wednesday. The euro fell from $1.0783 to $1.0782.
